//Land & Construction Loans
A construction loan offers the financial flexibility to bring your vision to life.
What is a Construction Loan?
A Construction Loan is a specialised financing option designed to fund the building of a new property or significant renovations. Unlike traditional home loans, funds are released progressively as your project reaches key construction milestones. This staged approach helps you manage costs effectively while ensuring funds are available when needed.
Key Features of a Construction Loan
Secured by the Property: The loan is secured against the property under construction, with funds disbursed in alignment with completed construction stages.
Progressive Payments: Payments are made in stages, ensuring funds are used efficiently, and saving you interest on unreleased approved funds.
Customised Financing: At InDepth Mortgage, we work closely with you to create a loan structure that suits your project’s scope and timeline, and serves you beyond the completion of the project.
Stages of Construction and Funding
Construction projects typically follow a series of stages, with funds released at each milestone. Below is an example of a standard house construction process and the approximate percentage of funds required:
The foundation is measured and poured (approximately 15-20% of funds).
Walls, structural elements, and conduits for plumbing and electrical systems are installed (approximately 20% of funds).
External walls, windows, doors, and roofing are completed (approximately 20% of funds).
Internal fixtures and fittings, such as cabinetry and flooring, are installed (approximately 30% of funds).
Final touches, potentially including fencing, painting, site cleanup, and detailing, are finalized (approximately 10% of funds).
Every construction project is unique. Your InDepth Mortgage Broker will provide personalized guidance to ensure your funding aligns with your specific project timeline.
Applying for a Construction Loan with InDepth Mortgage
To secure a Construction Loan, you’ll need to provide the following documentation:
A signed building contract or tender.
Council-approved construction plans.
Quotes for additional work, such as landscaping or other extras.
A contract of sale for the land (if not already owned).
InDepth Mortgage will arrange for a valuer to assess the property’s estimated value upon completion. Your loan amount will be based on either the land price plus construction costs or the on-completion value, whichever is lower.
Once approved, you’ll receive a loan offer to review and sign, similar to a standard home loan.
Your builder must submit insurance details and stage invoices that align with the agreed drawdown schedule before receiving payments.
Not all construction upgrades add value to the property. Your InDepth Mortgage Broker and their network of professionals can help you prioritize improvements that enhance both your lifestyle and property value.
Ready to Start Your Construction Journey?
Turn your vision into reality with a Construction Loan from InDepth Mortgage. Contact our team today to schedule a consultation with one of our experienced Mortgage Brokers. We’ll help you navigate the process, secure the right loan, and build the property of your dreams with confidence.
For a detailed breakdown of the construction loan process, explore our step-by-step Construction Loan Timeline or book an appointment with an InDepth Mortgage Home Lending Specialist today.
